Following predictions of a big Christmas for flat panel TVs by Australian retailers, as reported by www.connectedaustralia.com only weeks ago, US research company iSuppli is predicting a very Merry Christmas for US LCD-TV sales too.

According to the latest research consumers are being drawn in by hot deals and declining prices on low, mid and high-end products. This correlates with Australian trends of radically reduced prices and the current Christmas promotion war to lure consumers between brands.

US LCD-TV shipments are expected to reach 8 million units in Q409, a 7.3% increase on last year. According to iSuppli, this contrasts with the overall global CE market, which is expected to suffer a decline of revenue in Q4.

"iSuppli expects a strong fourth quarter for US LCD-TV sales. Although most US consumers already have purchased LCD-TVs in the past, low prices now are luring them to buy new sets that have higher quality images and improved features," iSuppli principal analyst, Riddhi Patel said.

LED attracts
The benefits of LCD-TVs incorporating LED technology, including lower power consumption, thinner units and enhanced picture quality are luring techno-buffs into purchasing new TVs. According to Patel the US market is now in "replacement" mode where consumers want to buy products that look better than first-gen sets.

"Consumers who bought first-generation LCD-TVs in 2003 or 2004 paid $3,000 for 32 inch sets, now are able to go to a retailer and spend less than $1,500 to purchase 42 inch LED-backlit TVs," Patel said.

"They are looking for premium features that provide a substantial improvement in terms of feature sets and quality. Sets with LED backlighting are being viewed by US consumers as worthwhile replacement purchases," he added.

LED fuels green conscious consumers too
iSuppli also noted that lower power consumption is the most important feature cited by US consumers that are concerned with environmental issues. This is a trend developing among US consumers which includes the desire for a green TV that consumes less power and uses fewer materials that are harmful to the environment.

"Consumers are becoming increasingly aware of green considerations. iSuppli's US TV Consumers Preference Analysis service in the third quarter polled US consumers who bought televisions and found that 45 percent said that green issues influenced their television buying decisions," Patel said.

TEMAX shows LCD on the rise in Oz
As reported earlier this week by www.connectedaustralia.com, GfK's Temax for Q3 indicated an upward trend in the Australian LCD market. Spend on flat panels (over 60% of total CE segment), declined by 5% in July but increased significantly (by 22%) in September.

This market continues to be driven by LCD, while plasma screens experienced some value decline. The high end of this category is becoming more competitive on the run-up to the Christmas quarter, with large full HD models experiencing rapid price erosion via promotions and cross-category giveaways.